?
2003-04 Budget Kick-Off
 CEO Budget Message to the TEAM
 Difficult Challenge Ahead
 State Budget Crisis
 Economy = Flat Revenues
 Confidence in this TEAM
2003-04 Budget Kick-Off
 CEO Budget Message to the TEAM
2003-04 Budget Kick-Off
 CEO Budget Message to the TEAM
 Budget Subcommittee 2003-04
 Board Chair - Sue Horne
 Supervisor - Drew Bedwell
2003-04 Budget Kick-Off
 CEO Budget Message to the TEAM
 Budget Subcommittee 2003-04
 CEO Members Assisting the TEAM
Rick Haffey
Laura Matteson
Joe Christoffel
Mary Ross
Stephanie Snyder
Louise Bock
Shannon Tougher
Leann Whitaker
Gerry Dillon
 Others Assisting the TEAM
Dale Flippin
Jim Carney
Dave Baxley
Lynnette Ellison
Bruce Bielefelt
Marcia Salter
2003-04 Budget Kick-Off
Fiscal Report
 Fiscal 2001/2002 Ended Modestly
Better than Anticipated
 General Fund Revenues Exceeded
Expenditures:
Actual 2001/2002 Rev/Exp
Utilized in 02/03 Budget
Additional Positive Results
$ 3,792,000
1,438,000
$ 2,354,000
Note: $1.3 Million in One-Time GASB 34 Residual Equity
Transfers from Closed Funds
2001/02 General Fund Revenues by Source
Taxes
Fees/Licenses/Charges for Services
Fines/Forfeitures
Interest
Intergovernmental
Other
Budget
$ 18,074,432
8,290,223
2,227,778
1,207,425
39,873,483
5,214,755
$ 74,888,096
Actual
$ 18,320,900
9,579,741
2,017,487
1,112,564
39,620,046
5,366,859
$ 76,017,596
Taxes
24%
Other
7%
Fee/Lic/Chgs
13%
Intergovernmental
52%
Interest
1%
Fines/Forfeitures
3%
2001/02 General Fund Expenditures by
Category
Salaries & Benefits
Supplies & Services
Other Charges
Capital Expenditures
Transfers/Indirect
Contingency
Budget
$ 39,186,643
20,729,451
18,122,666
1,303,383
(2,553,650)
339,884
$ 77,128,377
Actuals
+
Encumbrances
$ 37,670,003
21,927,814
17,328,956
1,064,598
(2,992,141)
$ 74,999,230
Internal
Capital
Trnf/Indirect
Expenditures
4%
1%
Other Charges
21%
Supplies &
Services
27%
Contingency
0%
Salaries &
Benefits
47%
2001/02 Expenditures By Department
Transit
3%
Non Departmental
1%
Airport
1%
Legislative &
Support Services
Solid Waste
6%
CDA
5%
Community Partners
1%
Child Support Services
4%
Sheriff
15%
District Attorney
2%
General Services
5%
Roads
9%
Probation/J Hall
4%
Public Defender
1%
Information Systems
2%
H.S.A.
27%
Library
2%
Insurance
3%
HCS
1%
Realignment Special Revenues
Fund
Balance
6/30/2002
Adult & Family Services
California State Children
Behavioral Health
Community Health
Environmental Health
Probation
$ 1,874,569
847,693
1,777,324
740,055
467,896
283,880
$ 5,707,537
Projected to be Used 02/03 Budget
$ (1,540,490)
Road/MVLF/Measure F/CIP
Beginning Fund Balance
$
MVLF Revenue 01/02
8,644,840
Less Other Allocations
Realignment
General Fund
(2,758,153)
(1,564,267)
(4,322,420)
Road Fund Drawdowns
Ending Fund Balance
3,907,148
(2,887,855)
$
5,341,713
50%
2002/2003 Budget
Fiscal Position & Plan
 Financially Solvent
 Discretionary Revenues in Modest Upward
Trend
 General and Other Operating Funds Ended
2001-02 Positively.
June 30, 2002 General Fund - Fund Balance
06/30/02
After
Close
Fund Balance Carry Over
Use of Fund Balance
2002/2003 2002/2003
Budget
Budget
Changes Position
2002/2003
Changes
New
Position
8,474
(1,438)
Transfers to Reserves
Recommended Unfunded Pension Reserve
(2,000)
(2,354)
Fund Balance Available
8,474
Reserve for Encumbrances
1,756
1,756
1,756
1,877
300
43
1,000
450
400
4,070
2,000
1,877
300
43
1,650
1,200
1,000
6,070
1,877
300
43
1,650
562
1,000
2,354
7,786
14,300
(1,438)
12,862
Other Reserves
General Purpose
State Realignment
COP Payments
Accumulated Leave Liability
Technology
Facilities Planning
Unfunded Pension Contributions
General Fund Reserves
Total Available Fund Balance and Reserves
(3,438)
650
750
600
5,036
(2,354)
(638)
2,354
1,716
(638)
2,682
12,224
Q2 General Fund Revenue/Expenditures
Budget
Actual
%
Revenue
$ 72,837,436
$ 29,733,986
41%
Expense
76,160,783
35,203,802
46%
General Fund Discretionary
Revenues








Property Tax
Transient Occupancy Tax
Sales & Use Tax
Franchise Fee
Motor Vehicle License Fee
Interest & Treasury Administration Fees
A87 Overhead
Other
General Fund 2002-03 Budget
Discretionary Revenues
Motor
Vehicle
License Fee
5%
Interest &
Treasury
Admin
3%
A87
O verhead
4%
O ther
1%
Franchise
Fee
2%
Sales & Use
Tax
15%
Trainsient
O ccupancy
Tax
1%
Property
Taxes
69%
Property Tax
16,056,238
2000/01
Actual
17,216,636
2001/02
Actual
18,217,014
2002/03
Estimated
19,278,842
2003/04
Projected
Sales & Use Tax
3,521,273
3,525,000
3,525,000
2002/03
Estimated
2003/04
Projected
3,489,606
2000/01
Actual
2001/02
Actual
Motor Vehicle License Fee
1,508,884
1,564,267
1,200,000
480,000
2000/01
Actual
2001/02
Actual
2002/03
Estimated
2003/04
Projected
Total Discretionary Revenue
26,168,242
26,143,971
25,957,414
24,973,446
2000/01
2001/02
2002/03
2003/04
Actual
Actual
Estimated
Projected
Preparation for Budget Kick-Off








Draft Budget Calendar
Identify CEO Team
Establish Budget Subcommittee
Develop Salary and Benefit Costs
Determine Rates
Make Preliminary 2003/2004 Projections
Develop General Fund Allocation Targets
Prepare Departmental Forms/Instructions
 Develop Web Portal for Budget
Board of Supervisors Provides
Direction
 Establish Goals, Objectives, and Budget
Principles (BOS Item 2/11/03)
• Finalize Budget Calendar (BOS Item 2/4/03)
Budget Management
FEBRUARY 2003
Last Revised: 1/18/03
Sunday
Monday
Tuesday
Wednesday
Thursday
1/26/2003
1/27/2003
1/28/2003
1/29/2003
1/30/2003
BOS Workshop
Sunday
2/2/2003
2/3/2003
3/2/2003
CEPO
2/9/2003
BOS Meeting
Monday
NACO
Budget Management
MARCH 2003
Tuesday
2/4/2003 3/4/2003
3/3/2003
Board Item to recommend
budget calendar and receive
Board direction
NACO
Sunday
BOS
Meeting
BOS Meeting
-- CEPO
Wednesday
2/6/2003
3/6/2003
PIT Crew/Training
DH Mtg.
Monday
Tuesday CEPO
DH Mtg.
DH
A-87
Review -- CEPO
Sunday BOS Meeting
4/7/20034/27/2003
3/16/2003
3/17/2003
3/18/2003
3/19/2003
2/17/2003 "C" Budgets Due to Admin
2/18/2003 Subc. 9-3
2/19/2003
4/6/2003
Monday
Friday
Saturday
3/7/2003
3/8/2003
Budget Management
JUNE 2003
Sunday
6/1/2003
Budget Management
APRIL 2003
Wednesday
3/30/2003
3/31/2003
4/1/2003
4/2/2003
3/9/2003
3/10/2003
3/11/2003
3/12/2003
3/13/2003
Subc.
1-5
2/10/2003
2/11/2003 Subc. 9-3
2/12/2003
2/13/2003
"B" Budgets Due to Admin
Budget System Training
Budget System Training
Budget System Training
Budget Kickoff 9-12
"A" Budgets
"B" Budgets
"C" Budgets
BOS MeetingBOS Meeting
2/16/2003
Thursday
2/5/2003
3/5/2003
"A" Budgets Due to Admin
DH Mtg.
3/14/2003
Subc. 9-3
Tuesday
Thursday
Friday
Saturday
4/3/2003
4/4/2003
4/5/2003
Monday
Tuesday
Wednesday
Thursday
Friday
Saturday
6/2/2003
Budget Hearing
6/3/2003
Budget Hearing
6/4/2003
6/5/2003
6/6/2003
6/7/2003
6/9/2003
6/10/2003
6/11/2003
6/12/2003
Agenda item for Final
Budget Adoption
6/13/2003
6/14/2003
6/18/2003
6/19/2003
DEADLINE for Public Copy
to BOS office--Final Budget
(in packet)
6/20/2003
6/21/2003
6/25/2003
6/26/2003
6/27/2003
6/28/2003
3/15/2003
Budget Management
MAY 2003
6/8/2003
Wednesday
Thursday
4/28/2003
4/29/2003
4/30/2003
4/8/2003
4/9/2003
4/10/2003
3/20/2003
3/21/2003
3/22/2003
Subc.
9-3
Subc. 9-3
2/20/2003
5/1/2003
4/11/2003
Friday
4/12/2003 5/2/2003
Saturday
5/3/2003
HOLIDAY Subc. Orientation 9-12
BOS Meeting
School Spring Break?
BOS Meeting
CSAC Leg. Conf.
2/23/2003
3/23/2003
3/24/2003
2/24/2003 Subc. 9-3
Budget Amendment #2 due
to Admin
4/13/2003
2/25/2003
5/4/2003
5/5/2003
5/6/2003
5/7/2003
3/25/2003 4/14/2003
3/26/2003 4/15/2003
3/27/2003 4/16/2003
3/28/2003 4/17/20033/29/2003
Subc. 9-3
Subc.
9-3
Subc. 9-3
2/27/2003
Subc.2/26/2003
1-5
Subc. 9-3
Budget Amendment #2 to
BOS
School Spring Break
School Spring Break
BOS Meeting
BOS Meeting
4/20/2003
6/15/2003
CSAC Leg. Conf.
5/11/2003
4/21/2003
Subc. 9-3
5/12/2003
4/22/2003
School Spring Break
BOS Meeting
School Spring Break
DH Mtg.
5/13/2003
4/23/2003
Subc. 9-3
Printer Deadline
5/14/2003
4/24/2003
Subc. 9-3
5/8/2003
4/18/2003
6/16/2003
4/19/2003 5/9/2003
5/10/2003
5/16/2003
6/22/2003
4/26/2003
5/17/2003
6/23/2003
6/17/2003
School Spring Break
5/15/2003
4/25/2003
6/24/2003
Final Budget Adoption
TENT: Gov. May Revise
School Spring Break?
DH Workshop
BOS Meeting
5/18/2003
5/19/2003
5/20/2003
DH Workshop
5/21/2003
DH Workshop
5/22/2003
5/23/2003
5/24/2003
Deadline for Public Copy to
BOS office
BOS Meeting
5/25/2003
5/26/2003
5/27/2003
5/28/2003
5/29/2003
5/30/2003
5/31/2003
HOLIDAY
BOS Meeting
IG Conf.
IG Conf.
IG Conf.
BOS Meeting
Upcoming Phases
 Departments Prepare Budget Submissions
 CEO Analysis and Review
 Budget Subcommittee Analysis and Review
 Board of Supervisors Review/Hearings
 Board of Supervisors Adoption
 Implementation
Preparation Issues To Expect
For 2003/2004
 No Supplementals
 Budget Questionnaire
 New Chart of Accounts
 Translation
 Historical Comparisons Difficult
 Service Budget Unit Focus
 Capital Improvement Plan
 Cost Savings Committee
 User Fee Review
 State Budget Watch
Budget
Portal
Related Links at
bottom of
screen
New Nevada County Chart of Accounts
 There are Three Major Elements to Our New Chart
Org Code
Account (f/n/a object)
Project
New Nevada County Chart of Accounts
 Org Code - Captures Information such as:
 Fund
 Service Budget Unit
 Office/Dept and Divisions of each
 Other Reporting Information
 Account - Captures Information about the character of:
 Assets/Liabilities/Fund Equity
 Revenue/Expense
 Project – Captures Information about:
 Grants
 Capital Projects
 Billing/A87
 Contracts
 Special Information Needs
The New Org Code
Fund
Service Budget Unit
Office 2/Division
Subservice
FFFF SSSSS OO2 UUUU
Where Will The Budget Be Controlled?
FFFF SSSSS
Where Will The Budget Be Entered?
FFFF SSSSS OO2 9998
The New Chart
FFFF SSSSS OO2 9998
Matched with Account
AAaaaaa
Matched with Project
OO2PCNNN
Where Do I Find The Chart
 Org Codes
 In Your Folder
 On the Portal
 If you wish to budget by Subservice contact A/C
 Account Codes





On the Portal
I Drive (I:/Auditor/Chart)
Tabs on W/S for Revenues & Expenditures
Sorted in OLD order
Helpful hint..use “find feature”
 Questions – contact A/C
Submission
Checklist
Budget
Questionnaire

















Mission
Department Description
Services
Major Accomplishments
Performance Measure for 2002-03
Objectives and Performance Measures for 2003-04
Unmet Needs
Re-Deployment of Resources
Critical Community Needs
Community Partners
User Fees
Grants
Revenues
Salary & Benefit Costs
Capital Improvements
Fixed Assets
General
Olga/Pentamation Translation
Pentamation Sign In
Entering Budgets
Entering Notes
Viewing Budget Worksheet
Printing Budget Worksheets
Salary & Benefits Worksheet








Employee Costs Generated from Payroll
Worksheet Based on OLGA Chart
All MOU and Equity Adjustments Made
Worksheet Calculates all Salary & Benefits
You Add Other Pay Items such as OT
You Add Temporary Staff
You Assign FTE to ORG CODE(s)
Worksheet will Calculate ORG CODE by
Account
Salary & Benefits Worksheet
Position
Control
Fixed Asset
Request
CAPITAL
IMPROVEMENT
PROGRAM
(CIP)
DEFINITION: CAPITAL IMPROVEMENT
 An acquisition or physical betterment
involving facilities, land, or equipment, with an
anticipated useful life of at least ten years and
a cost of $100,000 or more.
Capital improvements include:




Any new buildings;
Public works projects over $100,000
Leases of five years or more;
Land improvements, acquisition, and
development;
 Equipment over $100,000 and life of five
years;
 Long-range planning and feasibility studies.
PURPOSE OF THE CIP




Identify capital needs;
Programmed approach to using resources;
Reduce delays and duplication;
Evaluate public need, the interrelationship of
projects, and cost requirements;
 Establish a multi-year plan for investment;
and
 Provide for orderly budgeting, planning and
programming.
CIP POLICIES
 Address needs and/or demands.
 Realistic five-year plan, based on expected
revenues and other financial resources.
 Proposals evaluated in terms of their
estimated impact on the annual operating
budget of the County.
 Maintain its existing capital investments.
CIP POLICIES (cont.)
 Take into consideration the degree to which
proposed projects meet these criteria:
 Prolong the functional life of a capital asset of the
County;
 Take into consideration the degree to which
proposed projects meet these criteria:
 Reduce and/or stabilize operating budget costs;
CIP POLICIES (cont.)
 Enhance protection of public health and/or safety;
 Improve the ability of the County to deliver
services,
 Enhance the economic and social vitality of the
County;
 Ensure compliance with state and/or federal law or
regulations;
 Conform to the General Plan.
CIP GUIDELINES
 Five-year Capital Improvement Program,
updated annually;
 Annual CIP budget based on the multi-year
program;
 Coordinate the development of the CIP
budget with the annual operating budget;
 Maintain assets to protect capital investment;
CIP GUIDELINES
 Identify costs and potential funding sources;
 Determine least costly financing method;
 Projects will be reviewed and priorities
analyzed;
 CIP budget will be adopted and with annual
budget.
 General Services Department will monitor.
 Use smart growth criteria.
DEVELOPMENT OF THE CIP
 The development of the capital improvement
program includes:







CIP requests submitted to CEO’s Office.
Inventory of existing facilities.
Status of previously approved projects.
Financial analysis and programming.
Balance of debt service to current expenditures;
Debt capacity and debt service levels;
Compile and evaluate project requests
Adoption of the CIP
 CEO will present the annual Capital
Improvement Program and budget to the
Board of Supervisors for consideration,
modification and adoption coincident with the
annual operating budget.
Monitoring the CIP
 General Services will be responsible for the
implementation of the Capital Improvement
Program.
CIP
Request
Board of Supervisors’ Goals
 Goals reflect policy direction of BOS for FY 2003-2004 and
beyond
 Previous years’ goals were reviewed and updated at BOS
Workshop on January 27, 2003
 Adoption of goals expected at Board meeting on February
11, 2003
 Some may change, others may be added or deleted in final
review
Objectives
Objectives should be clear, measurable targets for
accomplishing applicable Board goals.
Outcome Focused …

Should be stated as a “destination” with quantifiable results to
enable progress to be appropriately measured

Challenging, yet achievable within available resources

Time frame of one year or less

Each objective should have one to five performance measures
Objectives (cont’d)
To: For: By: By: format is the county standard format for
developing objectives:
To:
 Action – increase, enhance, reduce, etc.
 Purpose – services, revenue, training, etc.
For:
 Audience/venue – customers, clients, community, etc.
By:
 Doing something quantifiable, e.g. potholes repaired,
processing time reduced, customer service enhanced.
By:
 Completion date.
Performance Measures

The key challenge is what to measure.

Should focus on how to tell if the objective is being, or has been,
accomplished

Three kinds of Measurement
 Quantity: How many or how long
 Quality: How well service is delivered
 Efficiency & Productivity: relationship of amount of input to the
amount of output
 Productivity – quantity/$$
 Efficiency - $$/quantity
Example

Goal: (from BOS 2003-2004 Goals)
 Goal 4: Use Technological and Innovative Means to Streamline and
Improve Services
 Goal 4a: Make progress on the implementation of CDA re-engineering

Objective: (For CDA)
 4.a.1.
To: Provide a predictable and timely site plan review process
For: for Permit Applicants By: by July 2003 By: by reviewing
application submission and processing procedures.
Performance Measures:
 1.a. Reduce error rate on initial submission of site plan applications
by 20%
 1.b. Complete 90% of site plan reviews within 7 days of submission of
a
complete application.
Example (cont’d)
 1.c. Achieve a favorable ratio of overall average permit processing
time to targeted response time
e.g. 7.3 (actual) = 1.04
7.0 (target)
 1.d. Reduce staff time spent on processing site plan applications by
10%
 1.e. Reduce applicant complaints about the site plan review process
by 50%

Each applicable department with CDA would then focus their
efforts on how they would accomplish the objective and meet the
performance measures

At the end of the Budget Year, CDA would be evaluated on how
successful it was in accomplishing its objectives
Other Budget Instructions

Rates
 A87
 Fleet
 Central Services
 Audit Costs
 Information Systems
 Liability Insurance
 Benefits
 PERS Health/Vision/Dental
Workers Comp
Allocations &
Due Dates
Other Budget Instructions




Liaison Assignments
Pentamation Training
Analyst & Subcommittee Reviews
Pick Up Folders
?
TEAM